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Markets

Tokyo stocks open lower on Dow fall, strong yen

  • The benchmark Nikkei 225 index was down 1.52 percent or 434.73 points at 28,208.48 in early trade
Published July 7, 2021

TOKYO: Tokyo stocks opened lower on Wednesday after the US Dow index dropped with a higher yen weighing on the market.

The benchmark Nikkei 225 index was down 1.52 percent or 434.73 points at 28,208.48 in early trade, while the broader Topix index slipped 1.24 percent or 24.16 points to 1,930.34.

"After the US Dow declined, Japanese shares are seen starting with losses," said senior analyst Toshiyuki Kanayama of Monex.

On Wall Street, the Dow ended down 0.6 percent at 34,577.37 and the broad-based S&P fell 0.2 percent, but the tech-rich Nasdaq closed up 0.2 percent.

"Sell-orders are seen dominating the Tokyo market as optimistic views on the US economy receded," after the release of a worse-than-expected economic indicator for the US service sector in June, Mizuho Securities said.

The dollar eased to 110.55 yen in early Asian trade from 110.61 yen in New York and 110.79 yen in Tokyo late Tuesday, which analysts said also weighed on the market.

Among major shares in Tokyo, Uniqlo operator Fast Retailing was down 1.55 percent at 80,600 yen and investment giant SoftBank Group was off 1.06 percent at 7,386 yen.

Toyota was down 1.02 percent at 9,649 yen.

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